Newmont, Tesla remain weaker; Microchip adds on hedge; Exelixis up; Oclaro taps market

By Rebecca Melvin

New York, Feb. 13 – Newmont Mining Corp.’s convertibles were active again Friday, as has been the case for much of the week, with the bonds remaining weaker despite higher shares for the Denver-based gold and copper mining company.

Tesla Motors Inc.’s convertibles also remained weak, slipping another 0.25 point on a dollar-neutral, or hedged, basis with shares remaining listless after the Palo Alto, Calif.-based electric car maker posted disappointing earnings that sent its shares lower on Thursday.

But there was outright buying of Microchip Technology Inc. that pulled the Chandler, Ariz.-based semiconductor company’s week-old convertibles up on swap by 0.375 point, a New York-based trader said.

The Microchip convertibles traded at 103, with the underlying shares at $50.71, compared to late Monday when the bonds were 98.7 with shares down 1.6% at $47.88.

Also improving on the week was Jarden Corp., which saw its convertibles strengthen on the back of its earnings that were in line with expectations.

Elsewhere, Exelixis Inc. was trading actively on Friday and up as much as 2 points to about 70, with shares up 9% at $2.48. Shares rose significantly this past week.

In the primary market, Oclaro Inc.’s newly priced 6% convertibles were quiet Friday after the San Jose, Calif.-based optical components maker priced $55 million of the five-year senior notes at the midpoint of coupon talk and beyond the rich end of premium talk.

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